Currently, it is looking very likely that the conflict between the US, Iran, and Israel is going to be in the ceasefire. Okay , one has to notice the word "ceasefire" as it just mean that war is going to be stopped, but it does not mean that the conflict is going to end, especially when I feel there is huge disagreement between Israel and Iran for the Israel policy towards Lebanon. I am here not making a point that who is right or wrong, but I like to highlight that if areas of disagreement exist, then the situation can become bad at any time and this will not be good for the world and the equity markets.
This good news actually shown very big impact on one of the stock that I was holding, This stock has jumped more than 10% in a week, and specifically in the last 3 days of the week. For me, I sold this stock on the morning of 15 April, when it started rallying. From my sell point, the price of the stock increased by Rs 5 as I sold in 78.50 Rs. Since I purchased the stock in 76.25 Rs, I have seen the unrealized loss in my account many times though I was sure that in the coming days, I would be able to get profit from it. Now question arises, then why I has sold it early as i know this is the renewable energy stock.
First thing is to notice the date, I already sold on 15th April while all news of truce talks start pouring in from 16th April. Also, with so many stocks in red in portfolio, this was an attempt to book a profit and preserve the capital. I am optimistic about it growth but i cannot ignore the fact the Russia- Ukraine war still not ended, so same can happen here too. Also, if in next day some major war news come, Then I am sure that I might have lose this profit and capital too. But booking the profit give me more capital to deploy in case of bad news.
It is little sad that I missed such a big profit with a margin of couple of days but I think preserving capital and booking profit should come first in uncertain times. I hope everyone is doing well as I heard with this ceasefire not only Indian , US market also recovered and I guess this might be same everywhere else.
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